The deal means that ICTSI’s subsidiary, Abbotsford Holdings Inc (AHI), now owns the controlling majority of 65% outstanding capital stock of HIPS.
ICTSI has a strategic interest in HIPS because it owns the Hijo International Port – a private commercial port in Barangay Madaum, Tagum, Davao del Norte, in the Gulf of Davao.
The terminal operator now intends to develop and upgrade the facilities and capacity of the port to handle containerised cargo – in the main, bananas.
Jose Manuel de Jesus, ICTSI vice president for business development Asia and HIPS president, said to Port Strategy: “While this year continues to be a challenge in terms of containerised cargo throughput through the ports of Davao, we remain bullish on the long term prospects of the area.”
Mr Manuel de Jesus said that existing facilities in Davao are nearing the limits of their capacities. He added: “Therefore, in anticipation of the future needs of the importers and exporters and cognizant of the time it takes to deliver the additional capacity needed to serve those needs, we feel that it is the right time to expand our operations in Davao. HIPS will help cope with the markets of tomorrow.”